What Are Tax Amendments?

Have you ever filed a tax return with incorrect numbers? If yes, this article is for you. We understand the frustration when one of the most important documents is filled with mistakes and panic that overwhelms you when it comes to fixing it timely.

Fortunately, to err is human, and the IRS gives you time to amend your tax return. It’s important to have your amended tax return refund checked, especially if you own more tax than you registered, you may end up paying the penalty for that.

Key Takeaways

• Having changes in your gross income or filing status are some of the reasons you need to file an amended return.

• You have either a 2-year or 3-year window to file an amended return either from the date of submitting your tax return or paying taxes.

• In case of a math error, there is no need to file a tax amendment since the IRS automatically corrects the amount.

Are Tax Amendments Necessary?

Not only are tax amendments necessary, but they can work to your benefit. In some cases, an amended tax return needs to be filled not because of the mistake you’ve made but due to such changes as:

• Gross income

• Filing status

• Deductions

• Credits

• Exemptions

By filing a tax return, you can get some of your money back and avoid paying penalties or interest, not to mention that some of you can qualify for financial aid to sponsor educational expenses. However, a single mistake may well prevent you from receiving any of the mentioned benefits. That’s why it only makes sense to get your tax return rights and have peace of mind.

When Can I File an Amended Return?

The thing about corrections is that they cannot be filed until the IRS actually processes your original return. Let’s say you are expecting a tax refund and already know it will be incorrect because of the typo in the tax return.

What you need to do is simply wait until you receive the tax refund, and only then can you file an amended return.

The good part is that the IRS gives you plenty of time to fix the mistakes or register changes. You have 3 years to file an amended return from the time of submitting an original return. For those who paid the taxes they owed, there is a 2-year window for an amended return.

File Amended Tax Return Online vs. By Mail

Before you start filing your return, you need to determine your filing status. It’s an important step that makes a difference in your deductions and estimates whether you are eligible to apply for credit.

Filing Online

Filing a tax return or an amendment online is the fastest way to go about it. The estimated tax refund should be within 3 weeks after the IRS finishes processing your tax return, which cannot be said about filing by mail, which takes at least 6 months.

Filing by Mail

When filing a tax amendment online, you can complete the forms from the comfort of your home. However, if you prefer to opt for the traditional way, you can send your documents by mail.

According to the IRS, each form number (1040, 1040-SR, 1040-X, 7004, and 941) has to be sent to a designated address, depending on whether you enclose or not your payment and whether you are a foreigner, among other criteria.

In What Cases Do I Not Need to File an Amended Return?

The only time when you don’t need to file a tax amendment is when you have made a math error or have forgotten to attach a form (e.g., a W-2).

In case of a math error, the IRS will fix it automatically for you, so you don’t have to file a duplicated tax return.

In case of a missing document, the IRS is most likely to enquire more information from your side.

How Long Does an Amended Return Take?

The IRS can’t precisely answer the question, “How long do amended returns take?”

One thing we know is that there can be a delay, regardless of whether you apply online or by mail.

The IRS may take about 6 months or more to process your tax return. The first 3 weeks are needed for the IRS to add to the system and the rest to actually process the amendment. Unfortunately, if your amended return has errors, it may prolong the process even further.

After the 3 weeks upon filing your amendment, you can go to “Where’s My Refund Amended?” and monitor the status of your case.

Tax Return Limitations

There is a time limit within which you should file your tax amendment. Fortunately, the IRS offers plenty of time to file it; however, if you fail to file your tax amendments, the IRS won’t process them.

You have 3 years from the due date of your original tax return. If you have filed your tax return after the deadline, you have 3 years from that date and not earlier. And if you paid any taxes that you owed, you have only 2 years to file a tax amendment.

Can I Amend a Tax Return from 5 or 10 Years Ago?

According to the IRS, you can file your original tax return at any time if you haven’t done it. There is no time limit on it. Logically, you can file an amendment no later than 3 or 2 years after filing an original tax return.

However, there can be exceptions that might make it impossible to file a tax amendment.

Final Word

Making a mistake in your tax return is never the end of the world. Errors happen, and we can’t safeguard ourselves from them, especially with everything going on. With a bit of patience, you can file your tax amendment within 2 or 3 years and worry not about paying any penalties.
By doing everything on time, you have an opportunity to get a tax refund loan early on to pay for your urgent expenses and not wait months for the IRS to send you the refund.

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